- This topic has 1 reply, 2 voices, and was last updated 10 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Inventory
Hello, regarding inventory testing ……when given a trial balance, the closing inventory balance is not stated IN the trial balance. When an auditor receives the TB from the client, those are the figures that are used as the population in calculating sample size. However, in most cases auditors receive a trial balance with the inventory included and it balances, could you please explain why?
It will balance if closing inventory appears provided they have posted opening and closing inventory to cost of sales:
Dr Cost of Sales
Cr Inventory (opening inventory)
Dr Inventory (closing inventory)
Cr Cost of sales